LPTFA should be accountable to someone

The opinion of the Louisiana Legislative Auditor's Office that the Lafayette Public Trust Financing Authority should comply with the state's Open Meetings Law, formulate a budget for itself and have an ethics policy are right on target. Those conclusions were the product of a recent investigation by legislative auditor Daryl Purpera.

The LPTFA is a public entity, and as such, should conform to the laws and practices that guide all public bodies.

The LPTFA was created in 1979 by what was then the Lafayette City Council as a trust that would provide lower interest home loans to Lafayette city residents who were not able to afford the prevailing mortgage interest rates of the time, which often approached and sometimes exceeded 20 percent.

LPTFA borrowed money and, in turn, loaned it out to prospective homebuyers, George Lewis, who was the city auditor at the time, told The Daily Advertiser on Friday.

But somehow, over the years, its function has evolved and it got into the field of developing property. Its most recent project has been its involvement in the former University of Louisiana at Lafayette Horse Farm, which is intended to become a public park.

The legislative auditor's investigation was requested by three Lafayette City Parish Council members.

One of the fundamental problems that necessitated an investigation by the legislative auditor is that, although the City-Parish Council makes appointments to the trust's board, it has no oversight authority or control over how the group spends its money, which Lewis said is "public money," and amounts to millions of dollars.

That can be problematic.

The need for an ethics policy and training became painfully obvious last year, when LPTFA's former chairman was charged with violating the Code of Governmental Ethics - further evidence, if one needs it, that it is considered a public body.

Current chairman John Arceneaux said in an article recently published in The Daily Advertiser that changes had been made "already in the past" to comply with some of the recommendations Purpera made in a June 19 letter to LPTFA. He also indicated the organization would continue to make changes, also pointing out that it had been a "best practices" audit and not a "compliance audit."

The lack of a budget and adequate accounting controls, which was noted in Purpera's report, appear to go back to LPTFA members' expressed belief that it is exempt from having to prepare a budget as required by the Local Government Budget Act.

Despite that stance, Arceneaux reportedly has said LPTFA will prepare an annual budget.

That is something citizens should expect from a public body that handles millions of dollars of public funds.

The LPTFA recently failed to notify local media of a meeting, in an apparently inadvertent violation of Open Meetings Laws. It also appears to have attempted in the past to skirt around those laws.

In 2011, the Attorney General's Office issued an opinion that LPTFA is subject to RS 42:11, the Open Meetings Law, which states that meetings of government bodies must be open to the public. The attorney general's opinion further stated that all votes must be cast "viva voce," or "live voice," and that all voting members must be physically present. This was in response to a query from Richard Becker, the LPTFA board's attorney. The board sought validation of casting written votes, citing problems with board members' schedules that made it difficult for all to be present at meetings called on short notice.

The Legislative Auditor's report concluded that LPTFA's board operates within the scope of its Trust Indenture. And that is a good thing.

But it seems that the board is lax about the rules, laws and principles that have been set up to regulate entities that are subdivisions of governing bodies.

Particularly troubling is the fact that LCG has no real authority over the board, except to appoint its members.

LPTFA is not a private organization or even a nonprofit organization.

It is a public body and should be accountable to someone - if not city parish government, then certainly the citizens of the city and parish it serves.

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Email this article

LPTFA should be accountable to someone

The opinion of the Louisiana Legislative Auditor's Office that the Lafayette Public Trust Financing Authority should comply with the state's Open Meetings Law, formulate a budget for itself and have

A link to this page will be included in your message.

Real Deals

Flip, shop and save on specials from your favorite retailers in the Lower Hudson Valley, 10604.